- This article offers a tour of the benefits and features of the FlexPortfolio as a more efficient alternative than a UCIT fund.
- If you are a fund manager or asset manager of any kind, you will want to know the qualities of the products listed on the stock exchange, also known as ETPs.
- If you want to learn more about the investment vehicles set up by FlexFunds or how you could benefit from them, do not hesitate to contact our team of specialists.
The FlexFunds FlexPortfolio offers more benefits than a UCIT fund
Institutional managers face a series of challenges when choosing the right investment vehicle for their clients. Although UCIT funds (Undertakings for the Collective Investment of Transferable Securities) are popular, they can also be costly and complex to launch and maintain.
If your objective is to improve the distribution of your investment strategy in the Latin American and offshore markets, there are better solutions than a UCIT registered in the European Union.
In this article, we will analyze the main differences between the UCITs and the FlexFunds FlexPortfolio to help you decide which solution best suits your investment needs.
Facility of access to global investors through Euroclear
One of the main advantages of FlexFunds’ solutions listed on the Vienna Stock Exchange (ETPs) is that they are Euroclearable, which means that they are available to broker-dealers and private banks worldwide.
In contrast, UCITs are not always negotiable on Euroclear, limiting the scope of their distribution. If your objective is to reach a global base of investors, a FlexPortfolio can be a better option.
Faster time to market launch speed
The FlexPortfolio can be issued within 6 to 8 weeks, and set-up and maintenance costs may be nonexistent. In comparison, UCITs require more time to structure the investment vehicle.
If you want to know more about the time to market and costs of FlexFunds’ FlexPortfolio, do not hesitate to contact our team.
Broader flexibility in the selection of underlying assets
The UCITs can present restrictions on the underlying assets they comprise, while the FlexPortfolio provides wide flexibility and various options.
This means that investment managers have greater freedom to build a portfolio that best adapts to their investment needs and strategies. FlexPortfolio may be the best option if you want more control over your portfolio.
Listed on the stock exchange
Another key difference between the FlexPortfolio and the UCITs is that the latter are not always listed on the stock exchange. The possibility of listing the FlexPortfolio can be an advantage for those investors who want greater transparency in their investments.
As explained in Fox Business, “liquidity provides peace of mind in knowing that it can cover unplanned expenses without having to assume a high-cost debt or be a forced seller of assets.”
Considering all options
At FlexFunds, we recommend comparing which solution best fits your needs and investment strategies.
It is important to consider these differences when choosing between a UCIT fund and a FlexPortfolio. The choice will depend on your investment strategy’s objectives and specific needs.
If you want more information about the FlexPortfolio, do not hesitate to contact our team.
Sources:
- https://www.foxbusiness.com/markets/pros-and-cons-liquidity
